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With Business Margins Under Pressure…suggestion for your business borrowers

In my business, I have known for years there were costs I could reduce. The never-ending telemarketing calls about less expensive phone options is just one good example.

As the economy officially hits recession, cost-cutting that was not worth it before, is now.

In the September 2008 issue of CFO Magazine, Contributing Author Randy Myers interviews CFOs on what they are doing to control costs as revenues drop. Most of the ideas focused on communication.

  1. Talk more frequently with customers to improve forecasting and better manage inventory levels.
  2. Talk more frequently with suppliers to help them do the same.
  3. Talk more frequently within the company to assess whether or not you have the right supply/demand balance.

Next time you are talking with a business borrower, try this question:
What impact is the need to control costs having on the how often you are talking to your customers and vendors? See if that leads to a conversation or an idea they can use.

About the Author
Linda Keith CPA is an expert in credit risk readiness and credit analysis. She trains banks and credit unions throughout the United States, both in-house and in open-enrollment sessions, on Tax Return and Financial Statement Analysis. She is in the trenches with lenders, analysts and underwriters helping them say "yes" to good loans. Creator of the Tax Return Analysis Virtual Classroom at, she speaks at banking associations on risk management, lending and director finance topics.